Paper negotiable instruments and documents (contracts) are unique in the fact that a tangible token, i.e. a piece of paper, actually embodies intangible rights and obligations. A core concept that is not easily transferable into the digital world is that of an “original” for purposes of legal concepts such as “Holder In Due Course,” “Presentment” and “Negotiation.” The extreme difficulty of creating a unique electronic token or other means which embodies the singular attributes of a negotiable paper document or instrument dictates that the rules relating to negotiable documents and instruments not be simply amended to allow the use of an electronic record for the requisite paper writing. Legal support has now been created for the creation, transferability and enforceability of electronic notes and document equivalents.
Although there exist some systems that attempt to provide for secure document storage and transfer, none present a system that strictly adheres to the new legal support, specifically, identifying and insuring a record is a single authoritative copy and that a record is transferable. Accordingly, there is a need for an electronic document system that strictly meets the present legal support, thereby giving no question to the authenticity of electronic documents.